De’Longhi Doubles Sales
De’Longhi is one of the leading global brands for home appliances, particularly recognized for their coffee makers.
In order to increase sales and awareness for selected De’Longhi premium coffee makers in the Russian market, the Italian brand decided that a discount promotion would not be the best way to market premium products and stand out from their ever increasing competition.
De’Longhi therefore partnered with RIX to create a reward-based sales promotion that would appeal to the audience and create a stronger marketing shout.
What were the goals and the budget?
Together with De’Longhi we identified three main targets for the reward-based sales promotion.
The brand had a budget of about 10% of the product value, which they would usually use to grant a 10% discount on their coffee makers.
1. Increase Sales & Market Share
Increasing sales and market share in the Russian market was the main objective.
2. Increase Awareness
With a strong competition for premium coffee makers, the brand needed a stronger message than the competition to capture awareness.
3. Improve POS Placements
Getting better POS placement with retailers was another goal for the campaign.
WHAT WAS THE REWARD AND HOW MUCH DID IT COST?
Knowing the budget constraints and the goals, we came up with a reward that would have a high perceived value for a target audience eager to travel to international destinations.
A free flight reward seemed to be the best fit for this campaign. The message “Buy a premium De’Longhi coffee maker and fly for free!”
6 Departure Airports
Customers could choose between 6 departure airports across Russia
38 Destination Cities
Customers could also choose one of 38 destination cities across Europe and Asia.
The costs for the brand was less than 10% of the product value. For their premium coffee makers the list price varied between 400 – 1000 Dollars. Due to the mechanics of the reward campaign, we calculated a price for a free-flight of 48 Dollars. De’Longhi had full budget-safety as RIX guaranteed this price and took over the risk of redemptions beyond expectations.
The value perception for an international flight, starts at 200 Dollars. A 10% discount can simply not compete with such value.
How did the campaign look?
HOW DID CUSTOMERS GET THEIR REWARD?
Customers needed to complete a purchase of a participating De’Longhi coffee-maker either online or at a retailer of choice.
An info card included in the packaging of the box prompted customers to redeem their flight and register on flywithdelonghi.com where they could upload their proof of purchase.
Customers could then choose three dates of departure and three destinations that would work for them.
The RIX customer support team then issued tickets for one of the choices. Everything was set for the free flight!
What were the results?
The promotion exceeded all expectations. All three objectives set in the beginning of the campaign were achieved. Not only did the brand almost double sales and increase market share, but due to increased interest by consumers in the brand they also received premium placements with retailers long after the campaign.
+82% Increase in Sales
De’Longhi increased sales by 82% compared to the campaign period of the previous year.
+26% Increase in Market Share
The brand was able to conquer a plus of 26% in relative market share within the campaign timeframe.
WHAT CAN WE DO FOR YOU?
Would you like to find out how we can help you bring your sales promotion to the next level? Then schedule a free consultation today and get some unique ideas that will help you stand out from your competition!